What is the safe harbor for avoiding estimated tax penalties for 2020 payments?
If the amount of the underpayment is more than $1,000, you can avoid penalties if you’ve paid at least 90%…
If I take the standard deduction, can I deduct gambling losses?
No. Gambling winnings must be reported as income, but gambling losses are deductible only as an itemized deduction. There is…
Has the residential energy credit been extended?
The nonbusiness energy credit, which is for adding insulation and certain other energy improvements to a principal residence, has been…
I receive disability from my employer, which is reported to me on Form W-2. Can I use this as a basis to make a Roth IRA contribution?
Long-term disability income that you receive prior to the minimum retirement age under your employer’s plan and that is shown…
When (and When Not) to Amend Old Returns
In most cases, you have three years in which to submit an amended return to claim a refund of overpaid…
IRS Interest Rates for Q2 2021
The interest rates on overpayments and underpayments are unchanged from the first quarter of 2021 (Rev Rul. 2021-6). The rates…
No Separation from Service Penalty Exception for IRAs
When a worker at Home Depot retired at age 55, he transferred his 401(k) to an IRA. The next year,…
American Rescue Plan Act of 2021
The American Rescue Plan Act of 2021, which was signed into law on March 11, 2021, is a new stimulus…
Filing Deadline Extended for 2020 Individual Income Tax Returns
The IRS announced a one-month postponement for the deadline to file 2020 individual income tax returns (IR-2021-59). Instead of the…
Understanding Your Health Care Options for 2021
It may seem that 2021 is a long time from now, but decision-making on your health care coverage for the…